Exam 26: The Determination of Aggregate Output, the Price Level, and the Interest Rate

Refer to the information provided in Figure 26.3 below to answer the question(s) that follow. Figure 26.3 -Refer to Figure 26.3. An increase in aggregate supply is represented by

Other things equal, a decrease in the price level ________ the equilibrium interest rate and ________ equilibrium output.

Refer to the information provided in Figure 26.3 below to answer the question(s) that follow. Figure 26.3 -Refer to Figure 26.3. The increased use of hydraulic fracturing, or fracking, in North Texas has significantly reduced energy prices across the country. This fracking would cause

Which of the following sequence of events follows an open market sale by the Fed?

Refer to the information provided in Figure 26.4 below to answer the question(s) that follow. Figure 26.4 -Refer to Figure 26.4. Suppose the economy is at Point A, a decrease in aggregate demand moves the economy to Point

Refer to the information provided in Figure 26.5 below to answer the question(s) that follow. Figure 26.5 -Refer to Figure 26.5. A decrease in government spending shifts the ________ to the ________.

An increase in oil prices will increase the equilibrium price level and decrease aggregate output, ceteris paribus.

When the aggregate supply curve is ________ any increase in the price level will not cause an increase in aggregate output.

________ shifts the IS curve to the left.

If a decrease in the price level does increase the real value of wealth, this is a reason for the downward slope of the aggregate demand curve.

Refer to the information provided in Figure 26.1 below to answer the question(s) that follow. Figure 26.1 -Refer to Figure 26.1. At $1,500 billion, this economy

An increase in the price of a key input in production, like oil, increases aggregate supply.

Refer to the information provided in Figure 26.1 below to answer the question(s) that follow. Figure 26.1 -Refer to Figure 26.1. At aggregate output levels above $1,500 billion, firms in this economy are most likely experiencing

The quantity of output supplied at ________ is represented by the aggregate supply curve.

Refer to the information provided in Figure 26.5 below to answer the question(s) that follow. Figure 26.5 -Refer to Figure 26.5. As a result of an increase in government spending, the equilibrium interest rate ________ and the equilibrium output level ________.

Related to the Economics in Practice on p. 541: In January 2014, a new Chair of the Board of Governors of the Federal Reserve System was confirmed. This person is

Sticky wages are one reason for the upward slope of the short-run aggregate supply curve.

Which of the following will, unambiguously, increase the price level?

Which of the following would cause the short-run aggregate supply curve to shift to the left?

Refer to the information provided in Figure 26.1 below to answer the question(s) that follow. Figure 26.1 -Refer to Figure 26.1. At aggregate output levels below $500 billion, this economy is most likely experiencing